Skip to main content

Overdraft Programs Under Attack; Recap of Reg Burden Hearing

Overdraft Programs Under Attack; Recap of Reg Burden Hearing:
Written by Steve Van Beek NAFCU
As if the CFPB's Inquiry into Overdrafts wasn't enough, there are continued pushes by both consumer groups and lawmakers to drastically change overdraft protection programs.  Oh, and the New York Times stepped in as well to write an op-ed.
Congress.  This seems like the Credit CARD Act all over again.  Remember how the Federal Reserve was working on amending and changing the credit card disclosures and rules but Congress forced the Credit CARD Act through anyway?  You know, the Credit CARD Act that is still being clarified, tweaked and amended because it was so poorly written.   
Well, even as the CFPB conducts its "inquiry" into Overdraft Protection (comment period extended to June 29th) - Congress is at it again.
Overdraft Protection Act.  Representative Carolyn Maloney (and 46 co-sponsors) announced she would introduce legislation that would:
  • Extend the opt-in requirement to paper checks, ACHs and recurring debit transactions;
  • Define overdraft fees as finance charges for Truth in Lending Act disclosures (Ed: Huh??);
  • Prohibit the ordering of transactions to maximize overdrafts;
  • Require that fees be "reasonable and proportional" to the amount of the overdraft;
  • Cap the number of fees at one per month and six per year;
  • Add new disclosures prior to opt-in and whenever an overdraft fee is charged; and
  • Require the CFPB to study overdraft fees on prepaid debit cards.
I guess when they say they want to "Stop Overdraft Protection" they are serious.  This bill (we haven't seen the full text yet) would pretty much do just that.  I can't imagine too many institutions continuing to provide this service if a bill along these lines would actually pass.
But, I wonder if Congress is worried that if they prohibited overdraft protection it would force consumers to actually keep track of their spending and take some responsibility.  Now, that would be draconian.
Consumer Groups.  If you haven't seen the recent Pew Study on Overdrafts, it is worth a read.  Also be sure to pass around your credit union.  This is what is being handed out to the CFPB and Congress in pushes to change the current overdraft rules.
***Overdraft Programs Under Attack; Recap of Reg Burden Hearing

    Comments

    Post a Comment

    Please no profanity or political comments.

    Popular posts from this blog

    Birth of the Weekend

      Birth of the Weekend   Today marks 100 years since Ford Motor Company became one of the first American companies to officially adopt the five-day, 40-hour workweek for factory workers, a decision that reshaped work-life balance. Henry Ford’s idea to eliminate Saturday from the workweek initially met hesitation from some hourly workers worried about reduced pay. However, his daily wages of $5 to $6—roughly double the industry average—helped to ease concerns ( read 1920s reactions ). Ford reportedly redirected Saturday wages to hire thousands more people for Monday through Friday shifts, reducing unemployment. The move also boosted productivity, reduced turnover, strengthened morale, and gave workers more leisure time, some of which they spent buying and traveling in Ford cars.  The US formally codified the 40-hour workweek in 1940, mandating overtime pay for hourly employees. More recently, momentum has grown aro...
    Post a Comment
    Read Complete Article HERE>»

    How did the Supreme Court become so powerful?

      A court designed to be the least powerful branch became one of the most influential institutions in history. 1440 Explores host Sony Kassam dives inside the Supreme Court of the United States, with help from Yale Law professor Akhil Reed Amar, to uncover how it gained extraordinary authority, what really happens behind closed doors, and why its power has become one of the most fiercely contested questions in modern democracy. ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: Annual Conference First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Advocacy  
    Post a Comment
    Read Complete Article HERE>»

    Fed Keeps Interest Rates on Hold in Split Decision at Final Meeting of Powell Era

      By  Keith Griffith April 29, 2026 In an unexpectedly close split decision,  Federal Reserve policymakers  have decided to keep interest rates on pause in what is likely to be the final meeting under the supervision of Fed Chair  Jerome Powell . Powell joined the 8-4 majority on the  Federal Open Market Committee  to vote in favor of leaving the  federal funds rate unchanged  at Wednesday's meeting in Washington, DC, judging inflation as running too hot to justify a rate cut. At a press conference after the vote, Powell revealed that he will remain on the board of governors as a regular member after his term as chairman ends, saying: "After my term as chair ends on May 15, I will continue to serve as a governor for a period of time to be determined. I plan to keep a low profile as a governor. There is only ever one chair of the Federal Reserve Board." Read the complete story here.
    Post a Comment
    Read Complete Article HERE>»

    Syracuse Fire Department Credit Union.

      ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: Annual Conference First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Advocacy  
    Post a Comment
    Read Complete Article HERE>»

    How's Your Posture?

          April Blog   How's Your Posture?   Scenario Planning Is Dead! Long Live Strategic Posture. by That One Consultant You Hired and Then Ignored   Somewhere in your credi...
    Post a Comment
    Read Complete Article HERE>»

    Boston Firefighters Credit Union Taps Tech Leader Elizabeth Adcock to Drive Digital Future

      Boston Firefighters Credit Union is bringing in some serious digital firepower. The organization just named Elizabeth Adcock as its new Chief Digital & Information Officer—a role that’s all about steering the credit union into a more tech-savvy, member-focused future. If you’re wondering why this matters, consider the timing. BFCU is in the middle of a major digital evolution, expanding its reach across Massachusetts while staying true to its core mission: serving first responders and their families. Enter Adcock, a technology executive with a track record of turning complex tech challenges into real-world wins. “I’m thrilled to welcome Elizabeth as our Chief Digital & Information Officer,” said Danielle Milner, President & CEO of Boston Firefighters Credit Union. “She is the rare combination of strategic vision, digital expertise, and human-centered leadership. Paired with her deep commitment to bring greater innovation to first responders and their families, her ser...
    Post a Comment
    Read Complete Article HERE>»

    IRS Reporting Proposal Scaled Back, but Still 'Flawed'

    On Tuesday, Senate Democrats distributed an update to the controversial IRS reporting requirements that the credit union industry has been very vocally opposed to since it was unveiled in late June. According to the updated proposal rolled out Tuesday, it would require financial institutions to report inflows and outflows of personal and business accounts, as well as transfers between accounts of the same owner, if it is more than $10,000 per year. The proposal floating around for the past four months had the threshold at $600 per year. The requirements do not apply to payroll deposits for wages or to those receiving Social Security benefits. In response to the updated IRS reporting proposal, NAFCU President/CEO Dan Berger said, “It has become abundantly clear that Americans oppose the IRS obtaining additional information on their financial accounts. The updated plan is nothing more than window dressing in an attempt to shore up support for a flawed proposal. Instead of creating financ...
    Post a Comment
    Read Complete Article HERE>»

    2 Historical Moments: CUNA Mutual Officially Changes Name Today, As Union Also Calls Strike

    MADISON, Wis.–One of the most iconic names in credit unions and credit union history in the U.S. will officially change today when CUNA Mutual Group begins operating under the TruStage brand across the enterprise. All enterprise, business-to-business and consumer brands are now unified under the single brand name of TruStage, which the company has been using for some of its products for a number of years. The new brand is being introduced at the same time approximately 450 employees represented by Office & Professional Employees Local 39 have gone on strike. It is the first strike in the company and the union's history. As CUToday.info has been reporting, the company and the union have been at an impasse since February of 2022, when t...
    Post a Comment
    Read Complete Article HERE>»

    Federal Reserve issues FOMC decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent.

     Recent indicators suggest that economic activity has continued to expand at a modest pace. Job gains have been robust in recent months, and the unemployment rate has remained low. Inflation remains elevated. The U.S. banking system is sound and resilient. Tighter credit conditions for households and businesses are likely to weigh on economic activity, hiring, and inflation. The extent of these effects remains uncertain. The Committee remains highly attentive to inflation risks. The Committee seeks to achieve maximum employment and inflation at the rate of 2 percent over the longer run. In support of these goals, the Committee decided to maintain the target range for the federal funds rate at 5 to 5-1/4 percent. Holding the target range steady at this meeting allows the Committee to assess additional information and its implications for monetary policy. In determining the extent of additional policy firming that may be appropriate t...
    Post a Comment
    Read Complete Article HERE>»

    Pickup Truck Sales Increase

    LAWRENCEVILLE, Ga.—Used vehicle values saw a slight increase in September, thanks to a surge in the values of full-sized pickup trucks, Black Book reports. The company’s Used Vehicle Retention Index hit an all-time high in September (130.8), a +1.8-point change from August (129.0). The uptick in values continues what many analysts have called surprising strength in the used market this year. However, big declines are expected before year’s end. “Overall, the Index increased slightly in September,” said Alex Yurchenko, senior vice president, data science at Black Book. “The increase was driven mostly by the strength of the full-size pickup segment in the first part of September as most of the other segments saw a drop in the Index. We expect the continuation of weakening of most of the segments including full-size pickups in the next several months as the economy remains weak and there is an expected glut of used supply.” The Black Book Used Vehicle Retention Index is calc...
    Post a Comment
    Read Complete Article HERE>»